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Market Segmentation, Targeting and Positioning Of Maggi

By Samatha A.S (1114389) Veena B.(1114333) Sneha John (1114326)

What Xerox is to photocopier and Colgate to toothpaste, Maggi is to noodles in India. Nestl India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestl SA, introduced the Maggi brand in India in 1982, with its launch of Maggi 2 Minute Noodles, an instant noodles product. With the launch of Maggi noodles, NIL created an entirely new food category instant noodles -in the Indian packaged food market (13se1). Because of its first-mover advantage, NIL successfully managed to retain its leadership in the instant noodles category even until the early 2000s. Indias booming middle class is still suspicious of packaged and processed foods and it can afford to be. One ready to eat food that has found its way into the Indian kitchen , though as Maggi Noodles. 'Fast to Cook Good to Eat is the tagline for Maggi. Nestle India Limited (NIL) in the past years has aggressively promoted Maggi noodles via various methods like free sample distribution, distributing gifts in exchange of empty packs, etc (13se1). The company used its advertising strategically to create an effective impact on the communication of the benefits of the product to target consumers. Its advertisements projected magi as a fun snack for the kids which gave the mothers ease of preparation. Maggi is positioned for consumption for the consumption household. Its primary target audience is the children in the age group between 6-14 years. It has tried to cater to the low income householders by introducing the Rs. 5/- pack (13se1). It was designed to be consumed as a evening snack. The commercial designed for the same show kids of the forementioned age group in the evening time consuming Maggi. Over the period of time with the need for healthy food (Vegetable Atta Noodles) gaining ground it repositioned itself by positioning it as healthy food (13se1). This was of paramount importance as the buyer in this case were mother who were going to feed there children who were in the growing age group. Given the special care that mother take of children in this age group Nestle has been trying to promote the healthy part more and more. It is packaged in bright yellow colour given that this colour is quite attractive to younger people. This colour makes Maggi both easily distinguishable and also lively. It has a strong distribution and its availability is present in both traditional retail and up-market posh supermarkets. It sells mostly in single size serving however it has innovatively changed the packaging allowing multiple serving inside the same packet. Through this it wants to increase

brand loyalty. Typically the higher sizes are for regular consumption households and are available at slight discounts. STP of Maggi 2 min Atta Noodles- Maggi Atta Noodles TV Commercial.webm (http://www.youtube.com/watch?v=wd9kBpea9As) 1. Segmentation, targeting, and positioning together comprise a three stage process. Segmentation involves finding out what kinds of consumers with different needs exist. Several different kinds of variables can be used for segmentation like demographic, age, behaviour, lifestyle of families, and eating habits. Lets analyse the market segmentation of Maggi atta noodles. Demography- variables essentially refer to personal statistics such as income, gender, education, location (rural vs. urban, East vs. West), ethnicity, and family size. Age- This particular ad is for the age from 6 to 60 plus as the ad is healthy and like by all ages. Income- Maggi as such is intended for the low and the middle-income families as it is affordable by all and even the people living in the rural areas can experience the taste of this tasty item. Gender- Maggi as such is a unisex brand and does not discriminate between male and female. The maggi atta noodles ad too includes both the male and female from the teens to the elderly. Location- Maggi as such and this too particular ad is for the urban city, but as such even the rural people can also afford to buy the two-minute noodles. Also, although the whole world consumes maggi, studies show that people in india consume the most amount of maggi in the world.

Behaviour- Another basis for segmentation is behaviour. Some consumers are brand loyali.e., they tend to stick with their preferred brands even when a competing one is on sale. Maggi which was introduced by Nestle is highly a loyal brand especially for the consumers of India. Because, as such Indians and mostly the middle income families do not trust the processed food items. However, maggi is the only processed food which is trusted by most middle and low- income families (13se).

1. Targeting is nothing but which segment to serve, and it may include organizations, or different stages of life-span development (13se). The maggi atta noodles ad targets the kids, teenagers, the office goers, homemakers, working women, youth, health conscious people and the elderly. The target is vast because , this is the only brand of maggi which is tasty and healthy at the same time specially for the elderly and the health-conscious citizens. 2. Positioning basically involves implanting the brands unique benefits and differentiation in the customers minds. This differentiation can be based on products ,

people , channels, image and services. The maggi atta noodles tag line is Taste Bhi Health Bhi. As mentioned above the target includes the kids to the elderly because of this criteria. The tasty part of it is intended for the kids, teens, middle-aged couples because when these part of the population hear the word health as well as atta , it puts them off as they tend to think it will not be tasty. The health criterion is mostly for the health conscious people and the elderly because it contains 84.2% of atta making it healthy for those who have cholesterol as well as those on diet. The other tag is 2min noodles making it easy for anyone to make it, especially for the working women who come back from office after a long day. Even the kids and teens that come back from school do not have to wait much as they also have hunger pangs after a tiring day.

STP of Maggi Hungrooo New Ad with Amitabh Bachchan http://www.youtube.com/watch?v=qCIUh8_HiuQ 1. Segmentation- Market Segmentation is the process of dividing a large market into smaller groups or clusters of customers with similar wants and needs and responses to marketing activities and programs. Lets anal yse the segmentation criteria for maggi hungrooo ad : Demography- variables essentially refer to personal statistics such as income, gender, education, location (rural vs. urban, East vs. West), ethnicity, and family size. Age The maggi hungrooo ad is intended for the age 11 to 18 as this ad is for the school going and the pre-university crowd. Income- Maggi hungroo ad is also intended for the low and middle-income families as it is affordable by them. However even the upper income families also buy this product as it is liked them also and thus maggi does not discriminate between the lessincome and the upper-income families as this product wants to be consumed by all. Gender Maggi as such is for both the genders as it is a food product . This particular ad shows a boy coming back home after a tiring day and shouts that he is hungry. Location- The maggi hungrooo ad is an Indian based ad as well as an urban intended ad.

2. Targeting Once the marketer creates different segments within the market, he then devises various marketing strategies and promotional schemes according to the tastes of the individuals of particular segment. This process is called targeting. Once market segments are created, organization then targets them. Targeting is the second stage and is done once the markets have been segmented. Organizations with the help of various marketing plans and schemes target their products amongst the various segments. Nokia offers handsets for almost all the segments. They understand

their target audience well and each of their handsets fulfils the needs and expectations of the target market.

As in the maggi hungroo ad , they have targeted mostly the kids and the teenagers as well as the mothers. The kids and the teenagers because after a very academic and a playful day at school , they definitely tend to get hungry and the most convenient as well as tasty food they can think of is maggi . Even when there is no one at home, they can cook it themselves and enjoy the tasty food, hence making it easier for a boy also to just heat it up and eat. This ad has targeted the mothers also because, it is easy for them also especially if they are working women or is tired after all the cleaning and cooking at home. 3. Positioning- Once the organization decides on its target market, it strives hard to create an image of its product in the minds of the consumers. The marketers create a first impression of the product in the minds of consumers through positioning. Positioning helps organizations to create a perception of the products in the minds of target audience. The maggi hungroo ad too has the tag line as mummy bhook lagi hai , and because of this tag and uses the psychological advantage to it as Indian mothers are very caring and loving , especially the homemakers and when the child shouts that he is hungry , the mother in them cannot help but make instant food for the. This is where maggi comes into place , wherin the mothers do not take much time to prepare this food and hence satisfies both the mother and the child/teen. This ad also sees Amitabh Bachchan for the first time endorsing a product for maggi and this superstar is an inspiration for the kids to the elderly citizens of India which makes the marketing better.

STP of cuppa mania - Maggi Cuppa Mania 2008.webm (http://www.youtube.com/watch?v=QhTkgH-yN9s) Segmentation Segmentation is the procedure that an organisation goes through to segregate the market into different groups according to the different characteristics which might need different products. The Marketer, groups various people into segments on the basis of similar characteristics, tastes, perception etc. so that they will have a similar view/response to a particular product launched specifically for each segment. (13se) The demographic aspects of segmentation include Age This particular cuppa mania ad is intended for the age between 19-25. Income- The maggi cuppa mania is priced at Rs.38 which can be affordable by the middle-income class but this rate is quite above the normal salary that the low-income families earn. Gender- The maggi ads include both male and females , however this cuppa mania ad is intended for the boys . But there are other cuppa manis ads which include both the gender. Location- This is an Indian based ad and also intended for the urban sector especially the youth of India.

1. Targeting- Targeting evaluates the attractiveness of each segment of its buying power, size, growth of the market, competitiveness etc. Defending a target market requires market segmentation, the process of pulling apart the entire market as a whole and separating it into manageable, disparate units based on demographics (13se). The maggi cuppa mania ad is target at the urban youth sector of India , and the this ad does not deviate from the target in short video. The target is the youth and especially male/boys because it is easy for them to eat it as it is like any other cup noodles , the difference being this cuppa noodles has the maggi masala ingredients in it. The other reason for the target being males is for the convenience as one just has to add water to the noodles and can enjoy the tasty cuppa mania. The last reason for the target being the youth sector is the location in the ad. The ad shows twp boys going for camping and since home-made food tends to get stale, the best option for them is getting the cuppa mania which is closed product which makes it fresh while eating. 2. Positioning- Positioning has come to mean the process by which marketers try to create an image or identity or value in the minds of their target market for its product, brand, or organization (13se). Since in todays fast paced world, multitasking is a reality and one needs something that fits with your rushed lifestyle- a product that is tasty as well as healthy.Maggi cuppa mania has all of the mentioned above. The maggi cuppa mania ad has the tag line Fast to Cook, Good to eat and the other being Taste Bhi , Health Bhi. The first tag is perfect for the fast paced youngsters of India especially if they are bachelor and are tired after a long day at work or a college goer who stays in the hostel or is a paying-guest and is fed up of the hostel food and wants a change in the eating habits. The maggi cuppa mania is fast to cook because one just has to add water and it is good to eat . The second tag is applicable for all the office goers who are married and if the wife has not reached from work or has gone for a tour , the husband without much help can eat the maggi cuppa mania. The office-goer who has cholesterol or is health-conscious can eat this masala cuppa mania which gives him the spicy taste and hence does not hinder is health .

Sneha(1114326)- Introduction and segmentation Samatha(1114389)- targeting Veena (1114333)- positioning

Reference:-

(n.d.). Retrieved september 8, 2013, from http://conceptsofmarketingmanagement.blogspot.in/p/segmentation-targeting-andpositioning.html (n.d.). Retrieved september 8, 2013, from www.maggi.in